Hike in petrol, diesel prices put off

The hike has been put off by state-owned oil companies apparently because of assembly elections in Bihar

A Re one per litre hike in petrol and Rs 2.28 a litre increase in diesel prices necessitated due to firming global oil rates has been put off by state-owned oil companies apparently because of assembly elections in Bihar.

State-owned IOC, BPCL and HPCL were to revise petrol and diesel prices today as per the practice of adjusting retail pump rates every fortnight after taking into account the average international oil prices and foreign exchange rate in the previous 15 day period.

But the oil companies choose to skip the revision this time. "There will be no change in retail price this week," said an official at one of the three retailers, without giving reason for such an action.

Industry sources said average cost of gasoline, against which petrol is benchmarked in India, had risen to $61.42 per barrel this month from $60.15 in second half of August. Rupee averaged 66.37 to a US dollar during September 1 to 15 as opposed to Rs 65.70 to a US dollar in previous fortnight.

The combined effect of the two had led to cost of petrol at refinery gate going up by 79 paisa per litre and after adding taxes the net increase at retail station would have been 98 paisa a litre in Delhi.

Similarly, international diesel rates had risen from $56.55 per barrel to $60.78 and after taking into account the foreign exchange variations, the refinery gate price had gone up by Rs 2 per litre. After accounting for taxes, pump rates in Delhi should have gone up by Rs 2.28 per litre.